How Did Ronald Reagan Affect The Economy

President Ronald Reagan, the 40th President of the United States, had certain qualities that many people viewed him in. On the other hand, President Reagan brought a lot of change to America for the good and some for the bad. Nevertheless, people believed that he was never given full credit for the work he did while serving in office. One strong belief that Ronald Reagan possessed was that no one in America should be poor. He believed that if you were poor, it was because of the choices you made and lack of ambition toward providing a stable environment for yourself and family. The urban poor, children, single mothers, disabled, were left to fend for themselves, after so many welfare programs were cut, and because Ronald Reagan believed in

According to "The Concise Encyclopedia Of Economics Reaganomics" (n.d.), "Reaganomics term was used because it was the way Reagan was able to stimulate the economy like no other president ever could.During the early twentieth century, the poorest Americans were the elderly. The Reaganomics proved that the government could help in improving people's lives ("The Concise Encyclopedia Of Economics Reaganomics", n.d.). Ronald Reagan plan was to end Social Security and allow millions of the elderly to live out their lives in severe poverty with no assistance from the government ("Ronald Reagan", n.d.). Therefore, President Reagan focused his policy agenda on things like cutting taxes, balancing budgets, and withdrawing support from social welfare programs that was provided to citizens. He believed that if the United States accomplished these goals, billions of dollars would be saved and the help put the economy back in a stable place ("Ronald Wilson Reagan ", ). Many of Reagan's economic policies came from economist Arthur Laffer, who felt as if cutting taxes for people who owned businesses and people who were wealthy in America, would encourage them to spend more (“the Concise Encyclopedia Of Economics Reaganomics", n.d.). By doing this it would help to provide more money into the economy. Because of Reagan policies, the Reagan administration were the only ones not to raise the minimum wage during the eight years that Reagan served. (" the Concise Encyclopedia

Although the size of our national debt increased dramatically. During Reagan's administration, the U.S. borrowed both domestically and abroad to cover the Federal budget deficits, raising the national debt from $997 billion to $2.85 trillion ("Ronald Wilson Reagan ", ). This changed the US status of being the largest international creditor, to the world's largest debtor ("Ronald Wilson Reagan ", ). President Reagan was able to reduce spending in many areas while never putting our military and country at risk. Usually when the government cuts spending on programs, we hardly ever are able to see the savings in our money. One of Ronald Reagan's most famous statements "government is not a solution to our problem; government is the problem" is now the rallying call for right-wing extremism ("Limiting Government, 1980–2010", 2010). President Reagan believed in improving our failing economy and so he cut taxes across the board ("Limiting Government, 1980–2010", 2010). In fact, this was the largest tax cut ever seen in the U.S. history ("Limiting Government, 1980–2010", 2010). The American economy was hit hard with recession between 1979 and 1982. With the Reagan Administration hard work, the economy started to show some growth with an annual rate of 4.2% from 1982 and 1989 (Krugman, 2003). Because the economy actually grew at a